News analytics holds promise of alpha for hedge funds traders

Trading the news

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The financial markets move on news and information. But as financial news becomes more abundant and easily accessible, the challenge is not so much finding the information but rather ways to make sense of it.

Fund managers have used computer programs to mine data from news reports, press releases and stock market announcements for decades.

Recent advances in the field of computational linguistics and natural language processing (NLP) have vastly improved the ability of computers to contextually a